Points of Interest

• 2:14 – 3:18 – Founding Insight: Parakeeto was created to help agencies easily answer crucial financial questions by replacing guesswork with structured systems.
• 3:23 – 4:39 – How Agencies Make Profit: Strong delivery margin is key. Parakeeto targets a 50%+ delivery margin and 20–30% net profit as benchmarks.
• 5:45 – 6:58 – Why Profitability is Hard to Measure: Profitability requires collecting and aligning fragmented data across leadership, ops, and finance functions.
• 6:59 – 8:33 – Framework Misalignment: Agencies struggle with inconsistent definitions and relationships between key metrics like utilization and capacity.
• 9:10 – 10:10 – Messy & Incomplete Data: Most agencies collect data in tools but struggle with consistency, structure, and hygiene—making optimization difficult.
• 10:41 – 12:14 – Need for Operational Bookkeeping: Like accounting, operational data needs regular cleanup, maintenance, and review to support decisions.
• 13:05 – 14:27 – Improved Visibility = Better Focus: Parakeeto’s framework simplifies agency metrics and identifies gaps to improve ROI tracking and alignment.
• 16:02 – 17:30 – Modeling & Benchmarking: Agencies get clarity by comparing their performance against industry standards and their own financial goals.
• 18:15 – 20:49 – Pricing Tools that Drive Profit: Parakeeto’s estimator helps standardize pricing, reduce guesswork, and align prices with profitability targets.
• 25:02 – 27:15 – Forecasting Made Simple: “Top-down forecasting” lets agencies simulate staffing and revenue scenarios with minimal setup—great for scaling.
• 29:39 – 31:58 – Actionable Reports Drive Change: With consistent reporting cadences, teams align around data to reduce scope creep and focus on what matters.

Additional Resources

Calculators

• Agency Profitability Target Calculator
• Agency Fee Calculator: How Much Should You Charge?
• Agency Rate Calculator: Determine Your Hourly Rate
• How to Calculate Your Billable Employee Cost-Per-Hour (ACPH)

Blog Post

• Measuring and Improving your Agency’s Profitability – The 2023 Guide
• 3 Key Profitability Drivers Agencies Need to Prioritize
• 8 Vital Agency Metrics & KPIs to Improve Profitability
• Maximizing Project Profit Margin: A Guide to Increasing Returns

Love the Podcast

Leave us a review here.

Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.